Under Armour’s e-commerce sales grow 29% in Q3
October 26, 2016 11:34 AM
Under Armour Inc.’s direct-to-consumer sales, which consist primarily of e-commerce sales, totaled $408 million for the third quarter, a 29% year-over-year increase compared with $316 million in the same quarter last year.
The company’s Q3 total revenue also increased 22.2% year over year to $1.47 billion, which marks the 26th consecutive quarter of more than 20% revenue growth, CEO Kevin Plank told investors in an earnings call Thursday, according to Seeking Alpha. Under Armour ranks No. 100 in the Internet Retailer 2016 Top 500 Guide.
Under Armour attributes some of this growth to its investments overseas and its Connected Fitness platform, which consists of several health-tracking wearable devices and four fitness apps: Under Armour’s fitness recording app Record, personal training app Endomondo, weight loss coaching app MyFitnessPal and exercise tracking app MapMyFitness. Connected Fitness revenues grew 40% in Q3 to $20 million. Plank also noted that Under Armour is days away from reaching its 2016 goal of more than 190 million registered users.
“We believe strongly that [Connected Fitness] will prove an important differentiator in our relationship with the consumer,” Plank said. Under Armour uses the data gleaned from Connected Fitness users to cater to shoppers. Plank describes it as a shift to predictive analytics from backward-looking reporting.
“We will be able to personalize our e-commerce home page (by) driving off your geographic profiles, which sport categories are important to you, your (type of) exercise, how frequently you exercise, (and details about) sleep, weight, diet, and the make-up of your household,” Plank told analysts during the call.
Also during the quarter, Under Armour launched four new e-commerce sites, one each in Mexico, Australia, New Zealand and Chile, bringing the total to 30 global sites. Under Armour also is investing in China and has opened 100 retail stores in the country this year. North American revenue accounts for 85% of its business, Plank said.
For the second quarter ended Sept. 30, Under Armour reported:
- $1.47 billion in net revenue, a 22.5% increase from $1.20 billion in Q3 2015.
- North America revenue of $1.23 billion a 16.0% change from $1.06 billion.
- Net income of $128.2 million a 27.6% increase from $100.5 million.
For the first nine months, Under Armour reported:
- $3.52 billion in net revenue, an increase of 26.2% from $2.79 billion for the same time period last year.
- North America revenue of $2.93 billion a 20.1% increase from $2.44 billion.
- Net income of $153.8 million a 21.1% increase from $127.0.